Bitcoin has remained stuck within a wide range since April, demonstrating uncertainty about its next move. Although efforts by bears to push the price below the range’s support were defeated by bulls on September 11, Bitcoin is not yet out of the woods. According to Jamie Coutts, a chartered market technician and crypto market analyst at Bloomberg Intelligence, if the current tightening cycle continues and leads to an increase in unemployment and stress in the banking sector, risk assets like Bitcoin could experience further pain.
The cautious sentiment extends beyond Bitcoin, as a Bitfinex report reveals that the cryptocurrency industry experienced capital outflows of $55 billion in August. This decrease in liquidity has resulted in isolated events having a greater impact on the market. Traders are treading carefully in this uncertain environment.
Now, let’s analyze the price action of the top 10 cryptocurrencies to gain insight into their potential moves.
Bitcoin:
Bitcoin broke above and closed above the 20-day exponential moving average (EMA) of $26,228 on September 14, indicating a weakening downside momentum. The flattening 20-day EMA and mid-range relative strength index (RSI) suggest that the BTC/USDT pair might remain range-bound between $24,800 and $28,143 for a while. To stage a comeback, bears would need to quickly push the price below the 20-day EMA, which could lead to a retest of the strong support level at $24,800.
Ether:
Ether (ETH) dropped below the $1,550 support on September 11 but failed to see follow-through from the bears. This suggests strong buying at lower levels. The subsequent recovery has reached the 20-day EMA ($1,638), which will likely serve as a battleground between buyers and sellers. A break and close above the 20-day EMA could trigger a short squeeze and push the price to $1,745. Conversely, a downturn from the 20-day EMA would indicate continued bearish control and could lead to a retest of $1,550 and further downtrend.
BNB:
BNB (BNB) bounced off the psychological support level near $200 on September 12, signaling active bulls at lower levels. The ongoing recovery has reached the 20-day EMA ($215), a crucial level to watch. If the BNB/USDT pair turns lower from this point, it suggests negative sentiment and selling during relief rallies, increasing the risk of a breakdown below $200. However, the positive divergence in the RSI indicates diminishing selling pressure. A break above the 20-day EMA could open the doors for a retest of the 50-day simple moving average (SMA) at $225.
XRP:
XRP (XRP) has traded within a range of $0.41 to $0.56 for several days. The price has now recovered to the 20-day EMA ($0.50), a critical level to monitor. A push above the 20-day EMA would indicate reduced selling pressure and initiate a sustained recovery towards the resistance at $0.56. However, if the price turns down from $0.56, it suggests continued range-bound action. The next significant move may occur when bulls push the price above $0.56 or bears drive the XRP/USDT pair below $0.41.
Cardano:
Cardano (ADA) experienced strong selling pressure, dropping to $0.24 on September 11, but failing to break crucial support. The rebound off $0.24 on September 12 has brought the price to the 20-day EMA ($0.26) on September 15. This level is likely to witness a battle between buyers and sellers. A sharp downturn from the 20-day EMA would indicate selling during minor rallies, increasing the risk of a drop to $0.22. Conversely, a break above the 20-day EMA signals a stronger recovery to $0.28.
Dogecoin:
Dogecoin (DOGE) has been trading within a tight range between the 20-day EMA ($0.06) and solid support at $0.06. Breakout potential is high due to this prolonged range-bound trading. A push above the 20-day EMA suggests weakening of selling pressure, possibly sparking a relief rally to the 50-day SMA ($0.07), where bears are expected to intensify selling. Conversely, a sharp downturn from the 20-day EMA enhances the chances of a break below $0.06, potentially leading to a drop to $0.055.
Solana:
Solana’s SOL (SOL) has been oscillating between $14 and $27.12 for several months. The price has now reached the 20-day EMA ($19.51), posing a tough challenge for the bears. A break above the 20-day EMA could push the SOL/USDT pair to the resistance at $22.30, followed by $27.12. On the other hand, if the price turns down from the 20-day EMA, it suggests waning demand at higher levels. The bears would then attempt to resume the downtrend and pull the price to the vital support at $14.
Other cryptocurrencies such as Toncoin (TON), Polkadot (DOT), and Polygon (MATIC) have also seen price movements and present potential opportunities for traders.
In conclusion, the overall sentiment in the cryptocurrency market remains cautious. Bitcoin’s range-bound trading indicates indecision, and the industry’s capital outflows in August have heightened market sensitivity to isolated events. Traders are closely watching the price action of top cryptocurrencies like Bitcoin, Ether, BNB, XRP, Cardano, Dogecoin, Solana, Toncoin, Polkadot, and Polygon to gauge potential price movements and identify trading opportunities. However, it’s important to note that cryptocurrency investments carry risks, and individual research and analysis are crucial before making any investment decisions.
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